You spin off a business unit, merge it with a foreign company in a low tax domicile, and give the shares to your shareholders. Voila. Lower corporate taxes.

However, I doubt this particular form of inversion will become widespread because it chops companies up. Most CEO’s are trying to build their empires, not chop them into pieces managed by other people.

ESOP’s are commonly invested the company’s stock. But you do have an option to buy the Vanguard S&P 500 mutual fund (or other broad, low cost, index fund) instead. Do it. Diversify, diversify, diversify. The results of concentrating ownership are often tragic.

I’m generally skeptical of managed funds, but Dimensional is an exception. Their approach makes sense, is battle tested, and doesn’t rely on the luck of "star" stock pickers. It’s almost like a simplified, low risk hedge fund delivered through a mutual fund with very low fees.

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Certified by the Texas Board of Legal Specialization in Estate Planning and Probate Law.